Network Security Market Tops $1B in 3Q05

Quarterly worldwide network security appliances and software revenue was up 1 percent to $1 billion between 2Q05 and 3Q05, and is expected to increase 21 percent by 3Q06, according to Infonetics Research's Network Security Appliances and Software report. Annual revenue is forecast to grow to $6 billion in 2008.

"There is a lot of talk in the security market about 'network access control,'" said Jeff Wilson, principal analyst at Infonetics Research. "NAC is really the holy grail of network security, and is no simple feat, as it will impact all types of products, from client software, to security appliances, to network infrastructure, to the back-end. NAC implementations will drive purchases of network integrated security products, SSL VPN products, and an emerging category of NAC controller appliances, all of which we will track closely with this service moving forward."

3Q05 Highlights:

• Cisco leads the overall network security appliances and software market with 35 percent of total revenue, Check Point is second with 10 percent, Juniper is third with 8 percent.
• VPN and firewall appliances and software make up 77 percent of revenue, IDS/IPS 14 percent, and gateway anti-virus 9 percent; by 2008, IDS/IPS will make up 15 percent, gateway anti-virus 12 percent.

Network Security Appliances and Software tracks VPN and firewall appliances in six price-banded categories, hardware secure routers, SSL VPN gateways, VPN and firewall software, host- and network-based IDS/IPS products, and gateway anti-virus products. Forecasts are updated quarterly and cover all regions (North America, EMEA, Asia Pacific, CALA, and worldwide).